Kathmandu. Nepal Rastra Bank (NRB) has reduced the risk burden on small and medium enterprises (SMEs). The central bank has made a provision that only 60 percent risk burden will be applicable on loans related to agriculture, information technology and manufacturing industries up to Rs 30 million.
According to the new provision, such loans should be secured through a deposit and loan guarantee fund or a margin of at least 25 percent should be maintained on the market value of the mortgaged property.
In addition, there is a provision that the project to be invested should be insured. Earlier, loans up to Rs 25 million were kept under the ‘Regulatory Retail Portfolio’.
According to the NRB, the risk burden has been reduced with the objective of increasing credit flow to the agriculture, information technology and MSME sectors as per the government’s 100 Agenda on Governance Reforms.
